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05-10-2019
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The Assembly Department of Protocol, Inc., manufacturer of computers, incurred $280,000 in direct material costs and $70,000 in conversion costs. The equivalent units of production for direct materials and conversion costs are 1000 and 900, respectively. The weighted-average method is used. The cost per equivalent unit of production for direct materials is ________. (Round your answer to the nearest cent.)

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andromache andromache

05-10-2019

Answer:

The cost per equivalent unit of production for direct materials is $280

Explanation:

The computation of the cost per equivalent unit of production for direct materials is shown below:

= Direct material costs ÷ direct material units

= $280,000 ÷ 1,000 units

= $280

For computing the equivalent unit per cost we consider only material, not the conversion cost part, and we divide the direct material cost to direct material cost

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